Undifferentiated targeting occurs when the marketer ignores the apparent segment differences that exist within the market and uses a marketing strategy that is intended to appeal to as many people as possible. In essence, the market is viewed as a homogeneous aggregate.
The undifferentiated marketing strategy focuses on an entire target market rather than a segment of it. This strategy employs a single marketing mix – one product, one price, one placement and a single promotional effort – to reach the maximum number of consumers in that target market.
Which of the following is a basic requirement for effective market segmentation ? The market segment must present measurable purchasing power and size. Division of the total market into smaller, relatively homogeneous groups is known as market optimization.
Why would a company use the undifferentiated strategy ? The needs of individual consumers in the target market for a specific product are similar, so the organization can satisfy most customers with a single marketing mix.
Products that can be replaced with identical products but from different suppliers.
Benefits sought segmentation Segmenting by benefits sought refers to dividing your audience based on the unique value proposition your customer is looking to gain from your product or service.
: not divided or able to be divided into different elements, types, etc. : not differentiated undifferentiated cells an undifferentiated mass.
Differentiated marketing focuses on a specific market , a “different” market , that is interested in buying a certain type of product. On the other hand, undifferentiated marketing is designed to appeal to a broad range of customers.
The three activities of a successful targeting strategy that allows you to accomplish this are segmentation , targeting and positioning , typically referred to as STP.
Market segmentation can help you to define and better understand your target audiences and ideal customers. If you’re a marketer, this allows you to identify the right market for your products and then target your marketing more effectively. You could split an audience into segments based on whether they have a dog.
There are three broad groups of consumer segmentation criteria : Behavioral, Psychographic and Profile variables. Behavioral variables such as benefits sought from the product, and buying patterns such as frequency and volume of purchase may be considered the fundamental basis.
A company can benefit from undifferentiated marketing in several ways. This marketing strategy does not require the same level of research into consumer tastes as other types of marketing . In addition, undifferentiated marketing allows a company to appeal to a much wider audience than other marketing strategies .
Products marketed successfully through the undifferentiated strategy include commodities and staple food items, such as sugar and salt , and certain kinds of farm produce.
Undifferentiated marketing helps a business to reach mass people who couldn’t be done with a specific target market . As a result, though the price of the products/services is average, the higher selling makes a business profitable. It also makes a company less risky.